Alerts
TJMT Reaffirms the Secured Creditor’s Rights Over Property in Judicial Restructuring Cases
In a recent decision, the Mato Grosso Court of Justice (TJMT) reaffirmed the secured creditor’s right to consolidate ownership of a property, even when the property is deemed essential within the context of judicial restructuring.
Our firm represented the secured creditor in an interlocutory appeal within the judicial reorganization proceedings of a rural producer in Sinop/MT. The TJMT ruled that while the essential nature of the asset may suspend its sale or transfer, it does not prevent the consolidation of fiduciary ownership, safeguarding the creditor’s rights and ensuring legal certainty.
This jurisprudential development strikes a balance between the creditor’s rights and those of the debtor in reorganization. It allows the debtor to retain possession during the reorganization’s protection period while preserving the creditor’s right to consolidate and sell the property after this period expires.
Our partner Laura Bumachar and attorney Faiçal have prepared an in-depth alert on this topic. Access it Link. We are available to discuss how this decision may impact the credit and restructuring markets.